IL&FS private equity arm IL&FS Investment Managers (IIML) will raise funds worth $900 mn in 2007 for investments in infrastructure, real estate and hospitality.
In addition to raising a $400 mn-proprietary fund, it’s also in talks with the UK-based PE fund Trikona Capital to raise another $500 mn spread over two sector specific funds. Apart from this, IIML will also set up a $1 bn PE fund with Abu Dhabi Investment Corporation for investments in infrastructure. IIML and Trikona Capital already have two sector-specific PE funds for investments in real estate and hospitality. The corpus of these funds is $100 mn each. IIML’s proposed PE funds with Trikona Capital will also be for real estate and hospitality. The corpus of both the sector-specific funds is expected to be $250 mn each.
The proprietary fund that will be raised by IIML will invest only in infrastructure projects in India. The proposed fund would be raised by the company over the next three to four months.
IIML currently manages assets worth $1 bn in several funds and also manages a $56-mn proprietary fund of IL&FS. IIML has deployed $10 mn of its $100 mn PE fund set up jointly with Trikona Capital for investments in infrastructure and real estate. In October last year, the fund invested $9 mn in IL&FS Transportation Networks Limited for a 2.5% stake. The second fund, jointly promoted by IIML and Trikona Capital, is the hospitality fund which has deployed $60 mn of its $100 mn. The $1 bn PE fund with ADIC will make investments in infrastructure assets in West Asia and North Africa. Both ADIC and IL&FS will commit around $50 mn to the new fund.
Read The Economic Times article.
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